Chinese-owned e-commerce marketplaces are increasingly popular in the western world. On the flip side, the rise in popularity of apps and marketplaces like TikTok, TaoBao, Pinduoduo, Temu, Alibaba, AliExpress, has resulted in sharp public scrutiny regarding the business practices of these companies. The latest example is fast-fashion giant Shein, which has successfully listed in US stock exchange recently.
.The chair of a powerful House committee is drilling down on Shein's data privacy practices and its relationship with the Chinese Communist Party. Reps. Cathy McMorris Rodgers, a Washington Republican who leads the House's Committee on Energy and Commerce, sent a letter to Shein, asking about the user data it collects and the communications it has had with the Chinese government. Rep. The lawmakers sent similar missives to TikTok, Temu and Alibaba.
Shein has received numerous letters from members of Congress and local lawmakers across the nation about the use of forced labor in its supply chain, and it is already facing intense scrutiny from public officials who are concerned the retailer is skirting U.S. laws.
The letter asks Shein what data protection practices it requires from its third-party vendors and service providers and whether it collects biometric, genetic and other health data from users. The lawmakers also asked whether the company collects information on consumers' religious and political beliefs.
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